Global macro overview for 29/02/2016:
Good news from the US was released last Friday. The world's number one economy grew more than anticipated in the last quarter of 2015 than market participants expected. Business inventories expanded at a 1% rate, more than an expected 0.7% rate. The pace is still lower than the third quarter of 2015 when it grew at a 2% rate, but the growth is still projected to accelerate even more in 2016 as US consumers are enjoying cheap oil and gasoline prices and better job opportunities. In conclusion, the revised inventory estimate entirely accounts for the upward revision of GDP growth. "The first-quarter GDP growth is on track to rebound to a very healthy 2.5 percent (rate) which should dampen any concerns about an imminent recession" said Paul Ashworth, Chief North American Economist at Capital Economics and it is rather hard not to agree with him.
Let's take a look now at the US Dollar index' technical picture in a daily time frame after the revised inventories and GDP reports were released. After a bounce from the golden trend line, the index has broken through resistance at the level of 97.21 ( now support) and it is heading higher towards the level of 99.98. The uptrend is intact and bulls are in full control of this market.